Canadian Oil Sands Ltd.’s (TSX: COS)(OTCQX: COSWF) board of directors has recommended that shareholders reject the offer by Suncor Energy Inc. to acquire all of Canadian Oil Sands' common shares.
The board stated that the Suncor bid undervalued Canadian Oil Sands and was not in the best interests of the company and its shareholders. The board also concluded that the offer undervalued the company’s ownership in Syncrude, the country’s biggest synthetic crude project. Reuters reported that Canadian Oil Sands has a 37% stake in Syncrude, while Suncor has a 12% interest.
Canadian Oil Sands’ financial advisor, RBC Capital Markets, has provided the board with a written opinion that the consideration offered by the Suncor bid is inadequate to shareholders from a financial point of view.